Brazil playmaker Philippe Coutinho has signed a new contract with Liverpool, the English Premier League club said Tuesday.

It has been reported that Coutinho, who joined the Merseysiders from Italian giants Inter Milan for £8.5 million ($12.8 million, 11.2 million euros), in January 2013 will now be staying at Anfield until 2020, with his original agreement due to have expired in 2018.

"I'm really happy. It's a dream come true playing for this great club and being part of this squad," Countinho, 22, told liverpoolfc.com.

"This club is great and the fans have always supported me, so I've been eager to sign this new deal since conversations started. Today is a very happy day."

Liverpool manager Brendan Rodgers added: "I'm delighted that Philippe has committed his long-term future to us; he is clearly going to be a big part of our story in the years to come.

"The most exciting thing isn't just how good he is now, it's the further improvement he can make in his game. In terms of potential, he can still become even better.

"He has shown resilience in adapting to the environment and has embraced everything we have asked of him," the Northern Irishman said.

"It is my hope now that he continues with his improvement and development and becomes a figurehead for this exciting, vibrant, youthful squad of players, as we look to grow as a group and achieve success together."

Coutinho, who has scored 10 goals in 81 Liverpool appearances, has been in arguably the best form of his Reds career recently and last weekend set up both goals, for Raheem Sterling and the returning Daniel Sturridge, in a 2-0 league win at home to West Ham.